Proto Labs Inc (PRLB): Results of Operations and Financial Condition
Proto Labs Inc (PRLB) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Protolabs Reports Financial Results for the Second Quarter of 2026 Record Quarterly Revenue of $149.3 Million, a 10.6% Increase Year-Over-Year GAAP Earnings Per Share of $0.37, Non-GAAP Earnings Per Share of $0.60 Raising Full Year 2026 Revenue Growth Guidance from 6
How this was made
The 30-second read
Why it matters
Raised full-year revenue growth guidance to 8% to 10% and reported margin expansion (GAAP operating margin 7.6% vs 3.7% prior year) increase confidence in profitability and scalability. Q3 guidance provides a near-term benchmark for follow-through demand.
Market read
Traders can update models immediately using the raised FY guidance and the provided Q3 revenue and EPS ranges.
What to watch
The filing provides ranges for Q3 revenue and EPS but not order backlog or customer concentration details; investors may re-rate if those are weaker than implied by revenue growth.
Protolabs Reports Financial Results for the Second Quarter of 2026 Record Quarterly Revenue of $149.3 Million, a 10.6% Increase Year-Over-Year GAAP Earnings Per Share of $0.37, Non-GAAP Earnings Per Share of $0.60 Raising Full Year 2026 Revenue Growth Guidance from 6% - 8% to 8% - 10%
Record revenue grew 10.6% year-over-year, gross and operating margins expanded on both a GAAP and non-GAAP basis, GAAP and non-GAAP diluted EPS increased, Adjusted EBITDA increased, and the company raised full-year revenue growth guidance.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenueGAAP | $149.3 million | – | 10.6% increase |
| Total revenueGAAP | $149,341 (In thousands) | – | – |
| Total revenue per customer contactother | 16.7% increase | – | 16.7% increase year-over-year |
| Cost of revenueGAAP | $79,999 (In thousands) | – | – |
| Gross profitGAAP | $69,342 (In thousands) | – | – |
| GAAP gross marginGAAP | 46.4% | – | – |
| Non-GAAP gross marginnon-GAAP | 46.8% | – | up 200 bps |
| Marketing and sales expenseGAAP | $25,682 (In thousands) | – | – |
| Research and development expenseGAAP | $10,791 (In thousands) | – | – |
| General and administrative expenseGAAP | $19,650 (In thousands) | – | – |
| Restructuring and transformation costsGAAP | $924 (In thousands) | – | – |
| GAAP operating marginGAAP | 7.6% | – | – |
| Non-GAAP operating marginnon-GAAP | 12.0% | – | up 340 bps |
| GAAP diluted net income per shareGAAP | $0.37 per diluted share | – | – |
| Non-GAAP diluted net income per sharenon-GAAP | $0.60 per diluted share | – | – |
| Adjusted EBITDAnon-GAAP | $25.1 million | – | – |
| Adjusted EBITDA marginnon-GAAP | 16.8% of revenue | – | – |
| Cash generated from operationsGAAP | $15.4 million | – | – |
| Six months ended June 30 total revenueGAAP | $288,677 (In thousands) | – | – |
| Six months ended June 30 cost of revenueGAAP | $155,743 (In thousands) | – | – |
| Six months ended June 30 gross profitGAAP | $132,934 (In thousands) | – | – |
| Six months ended June 30 marketing and sales expenseGAAP | $50,462 (In thousands) | – | – |
| Six months ended June 30 research and development expenseGAAP | $21,331 (In thousands) | – | – |
| Six months ended June 30 general and administrative expenseGAAP | $36,662 (In thousands) | – | – |
| Six months ended June 30 restructuring and transformation costsGAAP | $2,345 (In thousands) | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Injection MoldingInjection molding revenue grew 13.1% year-over-year. | $53,625 (In thousands) | – | 13.1% year-over-year |
| CNC MachiningCNC machining revenue grew 13.6% year-over-year. | $70,360 (In thousands) | – | 13.6% year-over-year |
| 3D PrintingNo driver was provided. | $20,667 (In thousands) | – | – |
| Sheet MetalNo driver was provided. | $4,462 (In thousands) | – | – |
| Other RevenueNo driver was provided. | $227 (In thousands) | – | – |
Full year 2026 and third quarter of 2026 outlook
- RevenueFull year 2026 revenue growth between 8% and 10%; third quarter of 2026 revenue between $145.0 million and $153.0 million
- NoteThird quarter of 2026 GAAP diluted net income per share between $0.34 and $0.42.
- NoteThird quarter of 2026 non-GAAP diluted net income per share between $0.56 and $0.64.
What drove it
- Record quarterly revenue of $149.3 million and a 10.6% increase over the second quarter of 2025.
- Total revenue per customer contact increased 16.7% year-over-year.
- CNC machining revenue grew 13.6% year-over-year.
- Injection molding revenue grew 13.1% year-over-year.
- Management cited larger strategic customers expanding their relationships with Protolabs.
- Management cited momentum across customers, services, and regions.
Concerns
- 3D Printing revenue was $20,667 (In thousands), compared to $21,215 (In thousands) in the second quarter of 2025.
- Restructuring and transformation costs were $924 (In thousands) in the second quarter of 2026 and $2,345 (In thousands) for the six months ended June 30, 2026.
- The release does not provide full-year 2026 profitability, margin, operating-expense, or tax-rate guidance.
What to watch
- Third-quarter revenue delivery against guidance of between $145.0 million and $153.0 million.
- Third-quarter GAAP diluted net income per share delivery against guidance of between $0.34 and $0.42.
- Third-quarter non-GAAP diluted net income per share delivery against guidance of between $0.56 and $0.64.
- Execution against full-year 2026 revenue growth guidance of between 8% and 10%.
- Whether growth in CNC Machining and Injection Molding continues and whether 3D Printing revenue improves.
- Progress in margin expansion while the company invests in strategic growth initiatives and incurs restructuring and transformation costs.
Balance sheet and cash flow
- Cash generated from operations was $15.4 million.
- Cash and investments balance was $162.9 million as of June 30, 2026.
- Cash and cash equivalents were $127,918 (In thousands) as of June 30, 2026, compared to $110,826 (In thousands) as of December 31, 2025.
- Short-term marketable securities were $14,858 (In thousands) as of June 30, 2026, compared to $17,297 (In thousands) as of December 31, 2025.
- Long-term marketable securities were $20,120 (In thousands) as of June 30, 2026, compared to $14,308 (In thousands) as of December 31, 2025.
- Accounts receivable, net were $95,074 (In thousands) as of June 30, 2026, compared to $78,962 (In thousands) as of December 31, 2025.
- Inventory was $15,413 (In thousands) as of June 30, 2026, compared to $14,401 (In thousands) as of December 31, 2025.
- Total assets were $791,298 (In thousands) as of June 30, 2026, compared to $763,415 (In thousands) as of December 31, 2025.
- Total current liabilities were $73,204 (In thousands) as of June 30, 2026, compared to $67,002 (In thousands) as of December 31, 2025.
- Shareholders' equity was $691,733 (In thousands) as of June 30, 2026, compared to $673,932 (In thousands) as of December 31, 2025.
Analysis
Protolabs reported a strong second quarter, led by record revenue of $149.3 million, a 10.6% increase over the second quarter of 2025. The company also reported a 16.7% year-over-year increase in total revenue per customer contact. CNC Machining revenue grew 13.6% year-over-year and Injection Molding revenue grew 13.1% year-over-year, while management said larger strategic customers were expanding their relationships with the company.
Profitability improved materially. GAAP gross margin was 46.4%, compared with 44.3% in the prior-year quarter, and non-GAAP gross margin was 46.8%, up 200 bps from 44.8%. GAAP operating margin was 7.6%, compared with 3.7%, while non-GAAP operating margin was 12.0%, up 340 bps from 8.6%. GAAP diluted net income per share was $0.37 per diluted share versus $0.18 per diluted share, and non-GAAP diluted net income per share was $0.60 per diluted share versus $0.41 per diluted share.
Adjusted EBITDA was $25.1 million, or 16.8% of revenue, compared with $19.7 million, or 14.6% of revenue. Cash generated from operations was $15.4 million, and cash and investments totaled $162.9 million as of June 30, 2026. The balance sheet reported cash and cash equivalents of $127,918 (In thousands), short-term marketable securities of $14,858 (In thousands), and long-term marketable securities of $20,120 (In thousands). No capital-return activity was reported in the provided text.
Product performance was not uniform. 3D Printing revenue was $20,667 (In thousands), compared with $21,215 (In thousands) in the prior-year quarter, while Sheet Metal revenue was $4,462 (In thousands), compared with $4,303 (In thousands). The company also reported restructuring and transformation costs of $924 (In thousands) for the quarter. Investors should monitor whether continued investment in strategic growth initiatives and transformation activity can coexist with the reported gross-margin and operating-margin progress.
The outlook was raised for the full year, with expected revenue growth of between 8% and 10%, up from 6% - 8% as stated in the release headline. For the third quarter, the company expects revenue between $145.0 million and $153.0 million, GAAP diluted net income per share between $0.34 and $0.42, and non-GAAP diluted net income per share between $0.56 and $0.64. The filing does not provide full-year margin, operating-expense, tax-rate, or EPS guidance.
Management, verbatim
We delivered another strong quarter with record revenue, double-digit revenue growth, and both gross and operating margin expansion. More importantly, we are seeing increasing evidence that our strategy is gaining traction across the business, with larger strategic customers expanding their relationships with Protolabs.
Suresh Krishna, President and Chief Executive Officer
Through the first half of 2026, we have demonstrated that Protolabs can deliver strong financial performance while simultaneously transforming the business for the future. We are encouraged by the momentum we are seeing across customers, services, and regions.
Suresh Krishna, President and Chief Executive Officer
Record revenue and meaningful margin expansion in the second quarter highlight the strength and scalability of our business model. We continue to generate strong cash flow while investing in strategic growth initiatives, and we remain focused on balancing profitable growth with disciplined execution to drive value for customers and shareholders.
Dan Schumacher, Chief Financial Officer
Not in the filing
stated, not guessed- GAAP operating income for the second quarter of 2026 and second quarter of 2025 was not available in the provided filing text because the statement of operations was truncated.
- GAAP net income in dollars for the second quarter of 2026 and second quarter of 2025 was not available in the provided filing text.
- Non-GAAP net income in dollars was not provided in the available filing text.
- Free cash flow was not provided.
- Cash generated from operations comparison for the second quarter of 2025 was not provided.
- Debt balances were not provided.
- Share repurchases, dividends, and other capital-return activity were not provided.
- Quarter-over-quarter comparisons for revenue, segments, margins, EPS, and Adjusted EBITDA were not provided.
- Year-over-year growth rates for 3D Printing, Sheet Metal, and Other Revenue were not explicitly provided.
- Full-year 2026 gross-margin, operating-expense, tax-rate, GAAP EPS, non-GAAP EPS, and cash-flow guidance were not provided.
- Prior-quarter guidance was not separately provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
This is an SEC Form 8-K (Item 2.02) with the company’s Q2 2026 results and updated outlook, plus a scheduled earnings call.
Ticker impact
Proto Labs reported Q2 2026 record revenue of $149.3M, GAAP EPS $0.37, and raised full-year revenue growth guidance to 8% to 10%.
Likely positive near-term bias as raised FY guidance and higher margins improve forward expectations, with follow-through dependent on Q3 range vs Street.
The filing includes multiple directionally bullish datapoints: record revenue (+10.6% YoY), gross and operating margin expansion, and explicit guidance increases plus Q3 outlook ranges.
Market effects
Supports sentiment for digital manufacturing and prototyping services by signaling demand strength and operating leverage.
No specific regional macro linkage beyond company-wide performance.
Limited; impacts are primarily company-specific rather than a broad global supply-chain shock.
Counterpoint
Non-GAAP metrics may overstate underlying profitability; traders may focus on GAAP vs non-GAAP spreads and any FX or one-time adjustments.
Key entities
- companyProto Labs, Inc.
Digital manufacturing services provider reporting Q2 2026 results and raising FY 2026 revenue growth guidance.
- executiveSuresh Krishna
CEO quoted on strategy traction and customer expansion.
- executiveDan Schumacher
CFO quoted on cash flow and disciplined execution.
